The Blubber

President Donald Trump announced Tuesday that he will double tariffs on Canadian steel and aluminum from 25% to 50%, escalating trade tensions with the United States’ northern neighbor. Despite ongoing stock market turmoil and growing recession fears, Trump remains unwavering in his approach.

On social media, Trump said the tariff hike—set to take effect Wednesday—is a direct response to Ontario’s recent decision to raise electricity prices on U.S. customers.

“I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD,” Trump posted Tuesday on Truth Social.

Escalating Trade War Amid Economic Jitters

Following a sharp stock market sell-off on Monday and continued volatility on Tuesday, pressure is mounting on Trump to outline a clear economic strategy rather than risk pushing the economy into recession. However, the president is doubling down on the aggressive tariffs he championed during his 2024 campaign, unsettling investors who had expected a pro-business agenda focused on deregulation and tax cuts—not sweeping tariff hikes.

Trump has offered various explanations for his hardline stance on Canada, citing concerns over fentanyl smuggling and criticizing Canada’s high dairy tariffs, which he argues unfairly harm U.S. farmers. He has also continued to suggest Canada should join the U.S., an idea that has infuriated Canadian leaders.

“The only thing that makes sense is for Canada to become our cherished Fifty-First State,” Trump posted Tuesday. “This would make all Tariffs, and everything else, totally disappear.”

Canada Stands Firm Against U.S. Pressure

Incoming Canadian Prime Minister Mark Carney, set to take office in the coming days as Justin Trudeau’s successor, vowed that Canada would keep its own tariffs in place until the U.S. commits to fair trade.

“My government will keep our tariffs on until the Americans show us respect and make credible, reliable commitments to free and fair trade,” Carney said in a statement Tuesday.

In response to Trump’s new tariffs, Canada is preparing additional retaliatory measures, expected to be announced Wednesday. These will add to Canada’s initial CA$30 billion (US$21 billion) in tariffs on American goods, which already include orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles, and certain pulp and paper products.

Ontario Premier Doug Ford, who had responded to Trump’s policies by raising electricity costs for U.S. states, appeared on MSNBC Tuesday, urging American businesses and citizens to push back against Trump’s “chaotic” trade war.

“If we go into a recession, it’s self-made by one person. It’s called President Trump’s recession,” Ford said. “It shouldn’t be this way. We should be booming—both countries.”

Trump, in turn, criticized Canada’s use of electricity “as a bargaining chip and threat,” warning that the country “will pay a financial price for this so big that it will be read about in History Books for many years to come!”

Ontario supplies electricity to Minnesota, New York, and Michigan, and Trump has vowed to declare a national emergency in those states.